Match each description to the appropriate cost flow assumption (a-d).
-Cost flow is assumed to be in the reverse order of costs incurred.
A)Weighted average
B)First-in, first-out (FIFO)
C)Last-in, first-out (LIFO)
D)Specific identification

Question

Quizplus · Accepted Answer

LIFO (Last-in, first-out) assumes that the most recently incurred costs are the first to be recognized in determining cost of goods sold, which matches the description of cost flow being in the reverse order of costs incurred.

Match Each Description to the Appropriate Cost Flow Assumption (A-D)